Explain the further information you would need in order to report on the benefits and problems for creating higher contribution margins and higher profit margins on the basis of the design manager's proposals
Q: Cans plc is developing a new form of 'crinkly can' for soft drinks. The crinkly can has grooves in…
A: Contribution Margin is simply the leftover amount after direct sales costs that a company has to pay…
Q: Carreker, Inc., has a number of divisions, including the Alamosa Division, producer of surgical…
A: The value attached to the goods or services transferred between related parties is known as transfer…
Q: Michelin is considering going "lights-out" in the mixing area of the business that operates 24/7.…
A: Manual insertion cost is the component of the cost incurred for the process of manual insertion. The…
Q: What is the standard cost per unit for widgets
A: Standard cost: standard cost is the budgeted cost of a product before doing anything in a company…
Q: Michelin is considering going “lights out” in the mixing area of the business that operates 24/7.…
A: Replacement of an asset is made when a better alternative is available and the current asset is…
Q: Max Payne is CEO of Payne Publishing, which publishes accounting and other business textbooks. An…
A: Step 1 Highest Price per Text book is the net cost after savings in fixed cost to the Payne.
Q: The manager of the SkyHigh division of Superball Corp. is faced with a decision on whether or not to…
A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…
Q: Alderon Enterprises is evaluating a special order it has received for a ceramic fixture to be used…
A: Definition: Cost: The amount paid to purchase the asset, install it, and put it into operations, is…
Q: Moisha is developing material standards for her company. The operations manager wants grade A…
A: Standard cost is the cost that has been estimated by the company for the upcoming year. In this…
Q: How would ROI be affected if the invested capital were measured at gross book value, and the gross…
A: Return on Investment (ROI) is the ratio between income and the average capital assets. ROI is used…
Q: Quality Clothing, Inc., produces skorts and jumper uniforms for school children. In the process of…
A: Given,
Q: Moisha is developing material standards for her company. The operations manager wants grade A…
A: The question is related to calculation of Standard Cost per unit. It ia calculated with the help of…
Q: Marwick Innovations, Inc. produces exercise and fitness gear. Two of its newer products require a…
A: The question is related to limiting factor. In the given question machine hours is limiting factor.…
Q: Tiffany Cosmetics manufactures, and sells a variety of makeup and beauty products. The company has…
A: Solution:- Calculate target full cost for producing 400,000 units as follows under:-
Q: Marwick Innovations, Inc. produces exercise and fitness gear. Two of its newer products require a…
A: This question deals with the theory of constrain. As the name suggest, constrain is a lack resources…
Q: shreds, and distributes a variety of salad mixes in 2-pound bags. Doug Voss, Operations VP, is…
A: The cross over point is the point where total costs of different alternative are equal.
Q: Narra Company manufactures different designs of love seats. At the start, the company built a large…
A: Variable cost means the cost which vary with the level of output where as fixed cost remain fixed…
Q: A manager of Varden Sporting Goods Company is considering accepting an order from an overseas…
A: As a part of analysis for accepting or rejecting the order, revenue and variable cost are compared…
Q: Current Operations Proposal of Vice President of Sales $2.5 $2 280,000 units Unit Price Unit Sales…
A: Income statement: Under this Statement showing the company’s performance over a period of time by…
Q: Quality Clothing, Inc., produces skorts and jumper uniforms for school children. In the process of…
A:
Q: BTS manufactures several components for a clock radio and assembles these parts as well. Recently,…
A: This question deals with the decision making aspect of the organization. It is a decision making…
Q: z Corporation produces a molded plastic casing, LX20A, for desktop computers. Summary data from its…
A: In the above question, the management is concerned about increase in cost and poor profitability.…
Q: A salesperson who sells commercial machinery to assembly companies that require large machines to…
A: ANSWER Misrepresentation of items includes happens when a maker, merchant, or vendor of an item…
Q: Johnson and Gomez, Inc., is a small firm involved in the production and sale of electronic business…
A: In order to determine the contribution margin per unit, the variable cost per units are required to…
Q: Hun Hakeem is the manager at Stella Design. He wants to maximize the total profit from two furniture…
A: Linear programming problem by graphical method is solved for finding corner points for a feasible…
Q: Mary Jones and Jack Smart have joined forces to start M&J Food Products, a processor of packaged…
A: Income=Sale-Variable cost-Fixed cost
Q: After reviewing the new activity-based costing system that Nancy Chen has implemented at IVC's…
A:
Q: Pina Colada Company makes swimsuits and sells these suits directly to retailers. Although Pina…
A: Hi! Thank you for the question, As per the honor code , we are allowed to answer three sub -parts at…
Q: Hi-Tech is the creator of Y-Go, a technology that weaves silver into the fabric to kill bacteria and…
A: Here in this question we are required to calculate minimum price at various level of activity and…
Q: Moisha is developing material standards for her company. The operations manager wants grade A…
A: Since actual costs could not be predicted in advance, standard costs represent approximations of the…
Q: What is the net effect of moving the employee from mixing/heating to cutting/assembly? What is the…
A: Net effect means the final result after taking all the effects into consideration and finally…
Q: In 1926 Branky scott and his wife GV started a small company in India that pioneered the use of…
A: Cost is referred to the amount which is incurred to manufacture the product, or to provide the…
Q: Fry Ltd are developing a new type of umbrella for cyclists. Market research has indicated that…
A: Following is the maximum hourly rate that Fry Ltd could pay to achieve the Target Cost
Q: Marwick Innovations, Inc. produces exercise and fitness gear. Two of its newer products require a…
A: This question deals with the concept of theory of constrain. As the name suggest, constrain is a…
Q: ans plc is developing a new form of 'crinkly can' for soft drinks. The crinkly can has grooves in…
A: Contribution margin means selling price - variable cost and profit means Contribution - Fixed Costs…
Q: Carreker, Inc., has a number of divisions, including the Alamosa Division, producer of surgical…
A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…
Q: The Pittsburgh division of Vermont Machinery, Inc., manufactures drill bits.One of the production…
A: 1.
Q: Santana Rey has found that Business Solutions’s line of computer desks and chairs has become…
A: Given that: Limited direct labour hours = 1015
Q: Temple, Inc. produces several models of docks. An outside supplier has offered to produce the…
A:
Q: Danna Lumus, the marketing manager for a division that produces a variety of paper products, was…
A: Contribution margin per unit = Selling price per unit - Variable cost per unit Break-even point…
Q: Marwick Innovations, Inc. produces exercise and fitness gear. Two of its newer products require a…
A: Contribution is the amount after reducing the variable costs from the sales revenue of an entity.
Q: Wham Products, a maker of specialty products, is currently manufacturing and selling a product…
A: Normal units when the special order is considered=400000-5000=395,000
Q: uce for institutional use. Jack has years of food processing experience, and Mary has extensive…
A: Step 1 A cost-benefit analysis is the process used to measure the benefits of a decision or taking…
Q: Sandhill Packaging Company is a leading manufacturer of cardboard boxes and other product packaging…
A: c) Order = 10,800 boxes Export taxes & Shipping = $816 Selling Price = $0.50 10% Premium on…
Q: loaded cost of $600,000 per year are used to manually weigh real rubber, synthetic rubber, carbon…
A: Calculation of Equivalent uniform equal cost to determine the option to be opt. Net Present value…
Q: The manager of the SkyHigh division of Superball Corp. is faced with a decision on whether or not to…
A: Hey, since there are multiple requirements posted, we will answer the first three requirements. If…
Q: Alexandria Ltd. manufactures high-quality pens. For many years the company manufactured only one…
A: Manufacturing overheads are indirect costs and expenses related with the manufacturing and…
Q: Sarah has talked with the marketing department about the situation and suggested that the company…
A: To identify the machine hour we have to firstly calculate the contribution per unit hour. then we…
Cans plc is developing a new form of 'crinkly can' for soft drinks. The crinkly can has grooves in the side that match the size of the fingers of a hand. The company's research and development department employs 50 people full-time and accounts for 2 percent of the company's costs. The design manager thinks that it may be important in the future to develop special designs for particular commercial customers, even if this involves relatively small production runs and a higher price to the customer for each can. he said 'Our profit margins are not yet satisfactory. I would like to maintain our existing level of sales of the standard can at the standard price, but also take advantage of our design skills and sell additional cans of the new style cans in smaller batches but at a higher price.' Explain the further information you would need in order to report on the benefits and problems for creating higher contribution margins and higher profit margins on the basis of the design manager's proposals
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Kelson Sporting Equipment, Inc., makes two types of baseball gloves: a regular model and a catchers model. The firm has 900 hours of production time available in its cutting and sewing department, 300 hours available in its finishing department, and 100 hours available in its packaging and shipping department. The production time requirements and the profit contribution per glove are given in the following table: Assuming that the company is interested in maximizing the total profit contribution, answer the following: a. What is the linear programming model for this problem? b. Develop a spreadsheet model and find the optimal solution using Excel Solver. How many of each model should Kelson manufacture? c. What is the total profit contribution Kelson can earn with the optimal production quantities? d. How many hours of production time will be scheduled in each department? e. What is the slack time in each department?Quality Clothing, Inc., produces skorts and jumper uniforms for schoolchildren. In the process of cutting out the cloth pieces for each product, a certain amount of scrap cloth is produced. Quality has been selling this cloth scrap to Jorges Scrap Warehouse for $3.25 per pound. Last year, the company sold 40,000 lb. of scrap, which would be enough to make 10,000 teddy bears that the management of Quality is now interested in producing. Their processes would need some reprogramming, particularly in the cutting and stitching processes, but it would require no additional worker training. However, new packaging would be needed. The total variable cost to produce the teddy bears $3.85. Fixed costs would increase by $95,000 per year for the lease of the packaging equipment and Quality estimates it could produce and sell 10,000 teddy bears per year. Finished teddy bears could be sold for $18.00 each. Should Quality continue to sell the scrap cloth or should Quality process the scrap into teddy bears to sell?Gumbrecht Company has the following departmental manufacturing layout for one of its plants: A consulting firm has recommended a value stream with the following manufacturing cell: Required: 1. Calculate the total time it takes to produce a batch of 20 units using the traditional departmental manufacturing layout. 2. Using cellular manufacturing, how much time is saved producing the same batch of 20 units? Assuming the cell operates continuously, what is the production rate? Which process controls this production rate? 3. Assume the processing time of Casting is reduced to 9 minutes, while the times of the other processes stay the same. What is the production rate now, and how long will it take to produce a batch of 20 units if the cell is in a continuous production mode?
- Moisha is developing material standards for her company. The operations manager wants grade A widgets because they are the easiest to work with and are the quality the customers want. Grade B will not work because customers do not want the lower grade, and it takes more time to assemble the product than with grade A materials. Moisha calls several suppliers to get prices for the widget. All are within $0.05 of each other. Since they will use millions of widgets, she decides that the $0.05 difference is important. The supplier who has the lowest price is known for delivering late and low-quality materials. Moisha decides to use the supplier who is $0.02 more but delivers on time and at the right quality. This supplier charges $0.48 per widget. Each unit of product requires four widgets. What is the standard cost per unit for widgets?Ingles Corporation is a manufacturer of tables sold to schools, restaurants, hotels, and other institutions. The table tops are manufactured by Ingles, but the table legs are purchased from an outside supplier. The Assembly Department takes a manufactured table top and attaches the four purchased table legs. It takes 16 minutes of labor to assemble a table. The company follows a policy of producing enough tables to ensure that 40 percent of next months sales are in the finished goods inventory. Ingles also purchases sufficient materials to ensure that materials inventory is 60 percent of the following months scheduled production. Ingless sales budget in units for the next quarter is as follows: Ingless ending inventories in units for July 31 are as follows: Required: 1. Calculate the number of tables to be produced during August. 2. Disregarding your response to Requirement 1, assume the required production units for August and September are 2,100 and 1,900, respectively, and the July 31 materials inventory is 4,000 units. Compute the number of table legs to be purchased in August. 3. Assume that Ingles Corporation will produce 2,340 units in September. How many employees will be required for the Assembly Department in September? (Fractional employees are acceptable since employees can be hired on a part-time basis. Assume a 40-hour week and a 4-week month.) (CMA adapted)Andalus Furniture Company has two manufacturing plants, one at Aynor and another at Spartanburg. The cost in dollars of producing a kitchen chair at each of the two plants is given here. The cost of producing Q1 chairs at Aynor is: 75Q1+5Q12+100 and the cost of producing Q2 kitchen chairs at Spartanburg is: 25Q2+2.5Q22+150. Andalus needs to manufacture a total of 40 kitchen chairs to meet an order just received. How many chairs should be made at Aynor, and how many should be made at Spartanburg in order to minimize total production cost?
- Mabbut Company has the following departmental manufacturing layout for one of its plants: A consulting firm recommended a value stream with the following manufacturing cell: Required: 1. Calculate the total time it takes to produce a batch of 10 units using the traditional departmental manufacturing layout. 2. Using cellular manufacturing, how much time is saved producing the same batch of 10 units? Assuming the cell operates continuously, what is the production rate? Which process controls this production rate? 3. Assume the processing time of Welding is reduced to 6 minutes, while the times of the other processes stay the same. What is the production rate now, and how long will it take to produce a batch of 10 units if the cell is in a continuous production mode?Bristol is developing material standards for her company. The operations manager wants grade A plastic tops because they are the easiest to work with and are the quality the customers want. Grade B will not work because customers do not want the lower grade, and it takes more time to assemble the product than with grade A materials. Bristol calls several suppliers to get prices for the plastic top. All are within $0.10 of each other. Since the company will use millions of the plastic tops, she decides that the $0.10 difference is important. The supplier who has the lowest price is known for delivering late and low- quality materials. Bristol decides to use the supplier who is $0.04 more but delivers on time and at the right quality. This supplier charges $0.52 per plastic top. Each unit of product requires six plastic tops. What is the standard cost per unit for plastic tops?Anderson Company has the following departmental manufacturing structure for one of its products: After some study, the production manager of Anderson recommended the following revised cellular manufacturing approach: Required: 1. Calculate the total time it takes to produce a batch of 20 units using Andersons traditional departmental structure. 2. Using cellular manufacturing, how much time is saved producing the same batch of 20 units? Assuming the cell operates continuously, what is the production rate? Which process controls this production rate? 3. What if the processing times of molding, welding, and assembly are all reduced to six minutes each? What is the production rate now, and how long will it take to produce a batch of 20 units?
- Computador has a manufacturing plant in Des Moines that has the theoretical capability to produce 243,000 laptops per quarter but currently produces 91,125 units. The conversion cost per quarter is 7,290,000. There are 60,750 production hours available within the plant per quarter. In addition to the processing minutes per unit used, the production of the laptops uses 10 minutes of move time, 20 minutes of wait time, and 5 minutes of rework time. (All work is done by cell workers.) Required: 1. Compute the theoretical and actual velocities (per hour) and the theoretical and actual cycle times (minutes per unit produced). 2. Compute the ideal and actual amounts of conversion cost assigned per laptop. 3. Calculate MCE. How does MCE relate to the conversion cost per laptop?Bienestar, Inc., implemented cellular manufacturing as recommended by a consultant. The production flow improved dramatically. However, the company was still faced with the competitive need to improve its cycle time so that the production rate is one bottle every four minutes (15 bottles per hour). The cell structure is shown below; the times above the process represent the time required to process one unit. Required: 1. How many units can the cell produce per hour (on a continuous running basis)? 2. How long does it take the cell to produce one unit, assuming the cell is producing on a continuous basis? 3. What must happen so that the cell can produce one bottle every four minutes or 15 per hour, assuming the cell produces on a continuous basis?Bienestar, Inc., has two plants that manufacture a line of wheelchairs. One is located in Kansas City, and the other in Tulsa. Each plant is set up as a profit center. During the past year, both plants sold their tilt wheelchair model for 1,620. Sales volume averages 20,000 units per year in each plant. Recently, the Kansas City plant reduced the price of the tilt model to 1,440. Discussion with the Kansas City manager revealed that the price reduction was possible because the plant had reduced its manufacturing and selling costs by reducing what was called non-value-added costs. The Kansas City manufacturing and selling costs for the tilt model were 1,260 per unit. The Kansas City manager offered to loan the Tulsa plant his cost accounting manager to help it achieve similar results. The Tulsa plant manager readily agreed, knowing that his plant must keep pacenot only with the Kansas City plant but also with competitors. A local competitor had also reduced its price on a similar model, and Tulsas marketing manager had indicated that the price must be matched or sales would drop dramatically. In fact, the marketing manager suggested that if the price were dropped to 1,404 by the end of the year, the plant could expand its share of the market by 20 percent. The plant manager agreed but insisted that the current profit per unit must be maintained. He also wants to know if the plant can at least match the 1,260 per-unit cost of the Kansas City plant and if the plant can achieve the cost reduction using the approach of the Kansas City plant. The plant controller and the Kansas City cost accounting manager have assembled the following data for the most recent year. The actual cost of inputs, their value-added (ideal) quantity levels, and the actual quantity levels are provided (for production of 20,000 units). Assume there is no difference between actual prices of activity units and standard prices. Required: 1. Calculate the target cost for expanding the Tulsa plants market share by 20 percent, assuming that the per-unit profitability is maintained as requested by the plant manager. 2. Calculate the non-value-added cost per unit. Assuming that non-value-added costs can be reduced to zero, can the Tulsa plant match the Kansas City per-unit cost? Can the target cost for expanding market share be achieved? What actions would you take if you were the plant manager? 3. Describe the role that benchmarking played in the effort of the Tulsa plant to protect and improve its competitive position.
